Abstract
This paper investigates problems and conflicts which managers and employees of Japanese wholly owned ventures in the PRC face.Four type of gaps which seem to be causing the conflicts are discussed, which are: 1) Behavioral gaps, 2) Cross-cultural gaps, 3) Core value gaps, and 4) Ethnocentric gaps. From the interview data, the author concludes that in order to narrow these gaps, there needs to be efforts from both Japanese managers and Chinese employees to study and analyze the differences in their core values. Referring to one of the cases reported by interviewees, the author further suggests that integration of Third Culture or Charismatic Corporate Culture to existing “ Two-Cultures”environment may be alternative solutions to the on-going problems which threaten effective operations of the wholly owned ventures.
